Oil Rejected

After peaking on day 7, oil had been finding support at the rising 10 day MA – until Tuesday.  Oil closed below the rising 10 day MA and the 200 day MA on Tuesday.  Then oil delivered bearish follow through as it was rejected by the declining trend line on Thursday.

Oil closed below both the 10 day MA and the 200 day MA on Thursday to signal the daily cycle decline. Thursday was day 16 for the daily oil cycle. The peak on day 7 sets oil up for a left translated daily cycle formation. A break below the previous daily cycle low of 36.13 will form another failed daily cycle and continue the intermediate cycle decline. That aligns with oil being in a daily downtrend.  Oil will remain in its daily downtrend unless it can close back above the upper daily cycle band.

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